What to do when a Congressional FCU account holder dies

All sums in the account belong to the surviving owners immediately; this is the default when the owners made no election. That interest stays subject to the credit union's lien for what the deceased owner owed it, and to any pledge the deceased owner granted, even without the survivor's consent.¹

The credit union freezes the account for up to 30 days from receipt of the original death certificate. Only automated debits and credits that existed on or before the date of death keep clearing.¹

At the end of the 30 days it splits the remaining funds in equal shares between the deceased owner's estate and the surviving owners, unless a court orders otherwise or the estate's representative and the surviving owners give it a written agreement first.¹

The credit union may pay the then-living beneficiaries in equal shares once proof of death of the last surviving owner is presented. These funds are not part of the estate, and the will cannot override the designation.¹

With no POD beneficiary and no surviving joint owner, the estate takes. The credit union may pay a personal representative, or the heirs where there is none, on proof that the deceased was the last surviving of all parties and of all named beneficiaries.¹

An IRA is settled separately, under the IRA Beneficiary Designation Form on file, never under the POD form, which excludes IRAs on its face.^{2, 3}

The early-withdrawal penalty on a certificate "will not be applied if the withdrawal is made subsequent to the death of any owner."^{4, 1}

If the personal representative needs a written accounting of the member's accounts, the credit union directs those requests to P.O. Box 23267, Washington, D.C. 20026-3267.¹

The credit union's statutory lien and the contractual lien in the account agreement let it take funds from any account, without further notice, to satisfy a defaulted obligation. A loan, credit card or line of credit balance can reduce what reaches a survivor or the estate.¹